The Differences Between Resellers and Retailers

Resellers differ from Retailers in that they have different profit margins and customer bases. But both fill an important niches in the consumer economic system by assisting in making products more accessible especially from small or niche companies that may not be as popular or well-established as the larger brands.

Retailers and resellers provide beneficial service, whether it’s directory a shopfront that sells used clothes or an online store that sells the latest electronics. They provide quality products at reasonable prices. They also handle a variety of sales-related issues that include marketing, promotions, pricing and customer service. They also help build relationships and trust among their customers, which can boost the credibility of a particular product.

What is a reseller?

In essence, a reseller functions as a middleman by buying a product from a manufacturer or distributor, and then selling the product to the end-user at a profit. The kind of reseller is different from a person who sells antiques and old video games, to large companies offering numerous lines of clothing and electronics.

There are numerous different reseller models and each comes with its own advantages and disadvantages. For example dropshippers are an excellent model for resellers because it allows them to keep inventory at a minimum while providing their customers with high-quality goods. However, the drawback is that the product isn’t in their control and may be difficult to manage in the event of problems with shipments or stock.